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Gaps & Issues Feeling that early adoption provides limited upside Streaming market data OMS systems not ready  Lead-time associated with vendor implementations  Client implementation of vendor upgrades Feedback pre- and post-execution to dealers  No information on how widely a quote has been distributed  Trade cover and best execution Exposes internal inefficiencies to the external world Older implementations for Fixed Income trading tend to modify earlier version of the protocol rather than upgrading to the latest versions

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Current state of FIX for Fixed Income FIX 4.4 released in April 2003  First version with full Fixed Income trading functionality Multi-dealer offerings  Pre- and post-trade allocations  Confirmations  Multi-dealer trade execution feedback Single-dealer offerings  Indication of Interests  Allocations  Confirmations  Trade execution

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Current state of FIX for Fixed Income (cont.) Order management systems  Increasing interest from order management systems to support FIX 4.4  A couple of the major systems are in beta testing  Majority of the leading order management systems will be 4.4 compatible Buy side  Indication of Interest  Upload of order book from OMS to trading application  Import of trade execution within OMS  Allocations: Pre & post trade Cheap FIX Engines availability  Quick FIX is publicly available and used by some institutions

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JPMLink FIX—applications In House system (Client developed)  Provides clients with a direct, fast, and reliable way to execute trades  Target: Custom order management system or black-box trading engines  Particularly applicable if client already supports FIX OMS platform (Commercial)  Provides clients using with the ability to execute trades using their OMS  Easy integration for clients on OMS platforms that have been certified compatible Grey Label  Provides a highly reliable, fast, high-volume connection for a third party  Clients trading through the platform have FIX accounts (but not individual user IDs or GUI access) and settle trades vs. JPMorgan  Trading GUI, blotter, and market data screens provided by third party service White Label  Similar to previous, but no client information or trading accounts are provided  Back to back trading

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